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President Obama on Monday signed the Small Business Jobs and Credit Act, changing the law to help level the playing field for service-disabled veterans (SDVOSB). Before this act was implemented, a business operating in a Historically Underutilized Business Zone (HUBZone) or an (8a) Disadvantaged Business held a sizeable advantage over Service-Disabled Veteran Owned Small Business (SDVOSB); this Act will help level the playing field for SDVOSB’s who are competing for contracts with the federal government.

President Obama Signing Small Business Act

Before this Act, HUBZones had mandatory federal contracting award preference over other businesses submitting proposals in response to a federal contract solicitation.

SDVOSB’s on the other hand were made at the discretion of the Contracting Officer who was responsible for a particular proposed contract. This disparity created an unfair distribution of contracts, with SDVOSB’s consistently falling short of the 3% of awarded contracts mandated by law for most agencies and their operating divisions.

Federal Law seems to move at a snails pace at times, but in this case we are seeing some progress toward the goal of a “fair shake” to the servicemen and women who have given of themselves and who should be compensated for their sacrifices and valor.

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Both types of veteran-owned small businesses have had mandatory preference over any other small business programs for Department of Veterans Affairs contracting opportunities since June 20, 2007, when 38 USC 8127(i) became effective:

(i) Priority for Contracting Preferences.— Preferences for awarding contracts to small business concerns shall be applied in the following order of priority:
(1) Contracts awarded pursuant to subsection (b), (c), or (d) to small business concerns owned and controlled by veterans with service-connected disabilities.
(2) Contracts awarded pursuant to subsection (b), (c), or (d) to small business concerns owned and controlled by veterans that are not covered by paragraph (1).
(3) Contracts awarded pursuant to—
(A) section 8(a) of the Small Business Act (15 U.S.C. 637 (a)); or
(B) section 31 of such Act (15 U.S.C. 657a).
(4) Contracts awarded pursuant to any other
small business contracting preference.

The Small Business Jobs and Credit Act provide a level field for all agencies except Veterans Affairs, where veteran small businesses have a unique mandatory statutory preference.